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West Forest Capital

How To Get A Hard Money Loan With Bad Credit

A hard money loan can help you finance your next rehab project. One of the most common questions we receive regarding loan approval is, Can I get a hard money loan with a low credit score?

Yes, you can! Hard money lenders lend based on the asset value of the property, therefore it is not a requirement to have good credit in order to get loan approval. Lenders often will run a credit report to get an overall sense of your credit history.

When checking credit, hard money lenders put more emphasis on the mortgage history, rather than on other debt. For example, a 600 FICO score due to medical bills instead of late payments on a house will be looked at more favorably than if the low FICO score was due to missed mortgage payments.

That being said, even if your credit is low due to missed mortgage payments in the past, it is still possible for you to receive a hard money loan.

What Is Required For A Hard Money Loan With Bad Credit?

The following is required for a hard money loan:

Down Payment:

For borrowers with bad credit, lenders might require a slightly larger down payment. However, you should still be able to borrow most of the purchase price.

Proof of Recent Payment History:

Showing recent good payment history is important.

What Else Can I Provide To Increase My Chances of Receiving a Hard Money Loan?

In addition to the above requirements, if you have a low credit score, you can take the following actions to help strengthen your application:

Work with a Credit Repair Specialist:
Working with a credit repair specialist isn’t required, but it can be helpful in increasing your chances of being approved for a hard money loan.

Pledging Collateral:
Pledging additional collateral can also be helpful in order to secure a hard money loan.

Demonstrate Income:
Demonstrating a strong sense of income can be done through either a tax return or bank statement.

Explanation Letter:
A lender might request an explanation letter explaining the reason for your low credit score.

Even if your credit score is low, you can still receive a hard money loan. At West Forest Capital, we have no minimum FICO requirement. Historically, we have given out many loans to borrowers with credit scores in the low 600’s and 500’s

Get Your Hard Money Loan with West Forest Capital

There’s never been a better time to apply for a hard money loan. West Forest Capital provides funds to real estate investors and others looking to finance non-owner-occupied real estate. We fund property types which include:

  • Apartments
  • Single-family
  • Multi-family
  • Commercial
  • Industrial
  • Land

We provide rehab funds, or full construction costs, as needed. We also provide fast closings, almost always less than 10 days, and often as quick as 3 to 5 days. We’ve even previously closed a brand new loan in one day! We lend in New Jersey, New York, Connecticut, Massachusetts, Pennsylvania, and Florida.

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To get started with your hard money loan,
please call us at 212-537-5833 or text us at 917-267-9523.

Hard Money Loans: FAQs

Hard money loans are short-term loans that are used to acquire investment properties to rehab and then flip for resale or rent. These loans are used by real estate investors and others who are looking to finance non-owner occupied real estate.

Yes, we can often pre-approve you on the same day as when you apply. For a pre-approval letter, please call us at 212-537-5833 or text us at 917-267-9523.

Yes, we do fund rehab costs through a hard money loan. In fact, we can fund 100% of your rehab costs. To do so, you will need to complete a portion of the project. We then send an inspector to review it, and we distribute the funds for the completed work. The entire process takes 2 to 3 days.

Yes, we provide extensions up to 6 months or longer on a case-by-case basis. We understand the timeframe complexities when rehabbing or building a new project – we will work with you.

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